India Arrests Garantex Founder Aleksej Bešciokov: U.S. Extradition Expected Over Cryptocurrency Crimes

In a significant blow to the shadowy world of cryptocurrency crime, Indian authorities have arrested Aleksej Bešciokov, the founder of the Garantex exchange, in Kerala. Charged by the U.S. with money laundering, operating without a money transfer license, and violating economic sanctions, Bešciokov faces up to 45 years in prison if convicted.

• Bešciokov arrested in Kerala, India.
• Charged with money laundering, unlicensed money transfer, sanctions violations.
• Garantex linked to ransomware, hacking, drug trafficking since 2019.
• U.S. and EU sanctions imposed on Garantex.
• Tether freezes $27 million in USDT linked to Garantex.

Bešciokov’s arrest on March 13, 2025, followed an Interpol red corner notice issued at the behest of the U.S. for financial fraud. His co-defendant, Aleksandr Mira Serda, remains at large, highlighting the challenges of global law enforcement in the crypto space. The charges against Bešciokov include conspiracy to commit money laundering, running a money transfer service without a license, and violating the International Emergency Economic Powers Act—a U.S. law that empowers the government to control economic transactions during emergencies.

Garantex, co-founded by Bešciokov and Serda, has been under intense scrutiny since 2019 for allegedly facilitating transactions tied to hacking, ransomware, terrorism, and drug trafficking. The exchange processed over $96 billion in cryptocurrency transactions, making it a significant player in the dark side of the crypto world.

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Garantex in April 2022, followed by the European Union’s sanctions in February 2025 as part of its sixteenth sanctions package against Russia. The pressure intensified when Tether froze $27 million in USDT linked to Garantex, forcing the platform to suspend all services on March 6, 2025. In a further crackdown, U.S. authorities seized three domain names associated with Garantex, crippling its online presence.

This case is part of a broader U.S. effort to combat cryptocurrency-related crimes, as demonstrated by the recent extradition of Gotbit founder Aleksei Andriunin from Portugal to the U.S. Andriunin faced charges of market manipulation and wire fraud, exposed through the FBI’s innovative sting operation involving a fake token called NexFundAI (NEXF). U.S. Attorney Joshua Levy emphasized the operation’s significance, stating, “This investigation, the first of its kind, identified numerous fraudsters in the cryptocurrency industry. Wash trading has long been outlawed in the financial markets, and cryptocurrency is no exception.”

The pseudonymity of cryptocurrencies and the ability to operate across borders pose significant challenges for law enforcement. FBI Special Agent Jodi Cohen noted, “We’re targeting nefarious token developers, promoters, and market makers in the crypto space,” underscoring the FBI’s proactive stance in tackling these crimes.

The arrest of Bešciokov and the actions against Garantex highlight the complexities of regulating and prosecuting activities in the cryptocurrency space. While cryptocurrencies like Bitcoin offer a decentralized and liberating financial future, they can also be exploited for nefarious purposes. The involvement of multiple jurisdictions and the use of sanctions and financial seizures illustrate the coordinated international effort to address these issues.

Yet, the broader vision of decentralization and financial freedom remains undeterred. Bitcoin and other cryptocurrencies continue to challenge traditional finance, offering alternatives to the status quo. However, cases like Garantex serve as a stark reminder of the need for vigilance and robust regulatory frameworks to prevent abuse and maintain the integrity of the crypto ecosystem.

The crypto community’s reaction to Bešciokov’s arrest has been mixed. Some view it as a necessary step to clean up the industry, while others worry about the potential chilling effect on legitimate crypto operations. Garantex users are left in limbo, uncertain about the fate of their funds.

So, while we champion the revolutionary potential of cryptocurrencies, we must also confront the darker corners where they can be manipulated. The arrest of Bešciokov isn’t just a win for law enforcement; it’s a call to action for the crypto community to root out and address the criminal elements that threaten to undermine our shared vision of a decentralized financial future.

Key Takeaways and Questions

• What led to the arrest of Aleksej Bešciokov?

  Bešciokov was arrested in Kerala, India, by the Central Bureau of Investigation on U.S. charges of money laundering, operating an unlicensed money transfer service, and violating the International Emergency Economic Powers Act.

• What criminal activities is Garantex accused of facilitating?

  Garantex is accused of facilitating transactions linked to ransomware, hacking, drug trafficking, and sanctions violations since 2019.

• What actions have been taken against Garantex by international authorities?

  Garantex has been sanctioned by the U.S. Treasury in April 2022 and the European Union in February 2025. Additionally, Tether froze $27 million in USDT linked to Garantex, leading the platform to suspend all services.

• What is the significance of the NexFundAI operation?

  The NexFundAI operation was an FBI sting operation using a fake token to expose market manipulation schemes, leading to the indictment of Gotbit and its founder Aleksei Andriunin.

• What challenges do authorities face in prosecuting crypto-related crimes?

  Authorities face challenges due to cryptocurrency’s pseudonymity, the complexity of cross-border operations, and the frequent changes of cryptocurrency wallets, which make tracking and prosecuting illicit activities difficult.

• What potential penalties do Bešciokov and Andriunin face if convicted?

  Bešciokov faces up to 20 years for money laundering, 20 years for violating sanctions, and 5 years for operating an unlicensed money transfer service. Andriunin faces up to 25 years for wire fraud and another 5 years for market manipulation.